In One Chart: The ‘popularity’ stock ratio that warns tech’s time may be up

As confidence soared among businesses, consumers and investors, popular stocks — especially technology shares — got more popular almost by virtue of already being popular.

Likewise, panned stocks can’t seem to win favor even if their fundamentals or long-run reputation says otherwise, said Jim Paulsen, chief investment strategist with The Leuthold Group.

Opinion:The average investor has turned against Facebook and other FAANG stocks

“Bull markets do not age by the clock but rather by their character and often end with investor aggressiveness and the comfort of popularity,” said Paulsen.

It’s this popular-to-panned ratio—deemed a new look at the market by Paulsen—that can play a big part in assessing late-cycle sentiment.

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